Porsche

REFERENCE CODE: 911B25EB-F5BA-4F83-8DC9-7423E0B1DBE6 PUBLICATION DATE: 8 Nov 2012 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

COMPANY OVERVIEWPorsche Automobil Holding SE (Porsche or “the company”) acts as a holding company for its investments in Porsche Zwischenholding and in Volkswagen. Through its subsidiaries, the company primarily manufactures sports cars, all-terrain vehicles (ATVs) and sports utility vehicles (SUVs). The company primarily operates in Germany, other European countries and the US. It is headquartered in Stuttgart, Germany and employed about 15,338 people as on December 31, 2011. The operating profit of the company was E213 million ($296.6 million). The net profit was E37 million ($51.5 million) in FY2011. Note: The number of employees included 15,307 people employed at Porsche Zwischenholding GmbH and 31 people employed at Porsche SE. Also, revenue details are not available and comparative figures of FY2010 have not been given as the company changed its fiscal year to December.

SWOT ANALYSISPorsche Automobil Holding (Porsche) acts as a holding company for its investments in Porsche Zwischenholding and in Volkswagen. Through its subsidiaries, the company mainly manufactures sports cars, all-terrain vehicles (ATVs) and sports utility vehicles (SUVs). Porsche integrated with Volkswagen to enhance its earnings. Volkswagen’s strong brand image gives Porsche a significant competitive advantage and helps it to register higher sales growth in domestic, as well as in international markets. However, emission standards adopted across various regions can result in additional costs for product development, testing and manufacturing operations of Porsche, which in turn could strain the margins of the company. Strengths Strategic integration with Volkswagen Weaknesses Lapses in product quality impacts the reputation Legal contingencies and litigations Threats Environmental protection regulations Competition in the global automotive market Excess capacity

Strategic integration with Volkswagen Porsche integrated with Volkswagen to enhance its earnings. In July 2012, Porsche and Volkswagen announced a complete integration of both the companies. In order to create the Integrated Automotive Group of Volkswagen and Porsche, the Porsche operating business was transferred to Volkswagen in two stages (2009 and 2012) in a cash and stock transaction. The transaction became effective in the following month. Following the transaction, Porsche became the majority shareholder in ordinary share capital of Volkswagen and is therefore an anchor investor in the automotive group. The Volkswagen group has been expanding its model portfolio in key segments. It comprises around 240 passenger car and commercial vehicle models and their derivatives. The group's brand portfolio includes a good mix of luxury cars and family cars. The...

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Porsche Automobil Holding SE is a German luxury car company founded by Ferdinand Porsche in 1931. Until 2008, the Canadian segment of Porsche was operated through Porsche Cars North America. When Canadian sales reached nearly 2,000 units, the company decided that there should be a headquarters and operations to meet the demands of the local market. Porsche Canada became an official stand-alone subsidiary in April 2008 (Mark, 2011).
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CASE FACTS
 Founded in 1931 by Ferdinand Porsche
 Started by selling design and engineering services to other car makers and was
established as an engineering firm.
 In 1934, Hitler commissioned Porsche to make a people’s car or a Volkswagen.
 In 1938, the first plant dedicated to manufacturing of WV was opened.
 In 1948, Porsche produced the first branded sports car and within 2 years
produced the Porsche 365 series.
THE TURNAROUND
 Between 1986 and 1993, Porsche’s sales had fallen and the company was on the verge of
bankruptcy.
 Focused on building new core competencies in lean manufacturing and synchronized
engineering.
 Decided to extend the product line beyond sports car niche.
 In 2003, Porsche introduced the Cayenne in collaboration with WV.
 In 2005, Porsche announced to launch a luxury sedan, Panamera in 2010.
 By 2007, Porsche became the world’s most profitable car maker.
 Porsche’s income topped $9.4 billion on revenue of $ 10 billion.
ISSUES
 Potential Brand dilution will happen since its switching from focus approach to broader market
to extend the Porsche product line.
 Porsche will face a problem of moving its executives and experienced management by VW into
key roles with other automotive brands as part of integration plan into VW Family.
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...﻿
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Porsche, the legendary and independent sports car manufactured was introduced by its founder Ferdinand Porsche in 1900. By 70s and 80s Porsche began producing what become the famous sports car 911. Until know Porsche have five different product line including the 911, The Boxer, The Cayman, The Cayenne and the Panamera. And each product lines have its differentiation in model and segmentation, for example The Cayenne model offered in four different model and compete with another luxury SUV model like the BMW X6 M, Mercedes-Benz ML63 AMG and Audio Q7. The Panamera, Porsche's fastest luxury sedan offered seven diffierent model and compete with Mercedes-Benz S65 AMG, BMW M5 and Audi S8. The Boxer and Cayman and each offered four different model, Boxer compete with James Bond's Z3, The Cayman compete with BWM Z4, Mercedes-Benz SLK models and Audi TT. And the most iconic Porsche 911 today offered over 20 stock models, start from Carrera, Targa, Black edition and Turbo. The Porsche 911 compete with another supercars like Ferrari Enzo, Aston Martin V12 Vanquish, Lamborghini Murcielago and Bentley Continental GT.
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-IndustryAutomobile/retail
-EnvironmentmySAP CRM
-ChallengesBuilding single views
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Luxury sports car manufacturer ensures it gets the very most
from its global customer relationship management software
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Porsche
The brand name Porsche is famous worldwide. From the 1930s
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power, quality, style, and action. Innovation and emotion is
epitomised by all Porsche vehicles. At Dr. Ing. h.c. F. Porsche AG,
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accelerating today demands creativity, competence and concentration knowledge that has been developed over generations.
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